Explore commonly used personal finance terms.
Acquisition is the process where one company purchases another, either through cash, stock, or other means, to gain control of its assets and operations. Acquisitions are common for business expansion, entering new markets, or acquiring new technologies. An acquisition may be hostile or friendly, and the purchasing company often absorbs or integrates the target company. Acquisitions affect shareholders, employees, and market dynamics, making them strategic moves requiring careful evaluation and execution.